Business risk:
A)is the risk after considering the effectiveness of top management controls.
B)is the risk that the client's internal controls will fail.
C)can include a new technology which threatens to erode a company's competitive advantage.
D)cannot be mitigated by management.

Question

Quizplus · Accepted Answer

Business risk refers to the risks that exist outside of a company's control and can negatively impact its operations, profitability, and competitive position. One example of business risk is the emergence of new technology that threatens to erode a company's competitive advantage. While effective top management controls can mitigate certain risks, business risks are often beyond management's control. Therefore, options A, B, and D are incorrect.

Business Risk